United Airlines MileagePlus update: Fewer rewards for non-cardholders
NO United Airlines credit card? Soon you will earn fewer miles than other travelers.
United is overhauling its MileagePlus frequent flyer program to reward passengers with more miles and lower redemption rates; this includes some long-haul business class seats if they have one of the airline’s credit cards. It’s the latest move by an airline to reward its highest-spending customers.
The changes mark the biggest change to the lucrative program in more than a decade; United began rewarding customers for how much they spent, not just how far they flew.
The airline has been working on the changes for about 18 months and aims to reward the carrier’s most loyal customers, United Chief Commercial Officer Andrew Nocella told CNBC in an interview.
The shift also comes as United tries to stand out in an increasingly competitive landscape for travel and rewards credit cards. This area also includes: American Express’ Platinum, Capital OneVenture X and Chase’s Sapphire Reserve cards.
United Airlines planes are preparing to take off from San Francisco International Airport.
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“In the credit card space in general, a lot has changed in the last five to 10 years in terms of the number of travel credit cards,” Nocella said. “What I’m thinking about as we make these changes for United is to make sure that if you’re holding the credit card, you put it in your wallet, and then if you’re not holding the credit card, you have a reason that seems incredibly compelling to get the credit card, if you want to fly United Airlines and you want to do that… travel to Tahiti, Rome, wherever we can take you.”
The changes will come into force on April 2. The airline said it plans to display United’s discounted award flights on its website “so customers can see exactly how much having a United card can save them on their travel.”
United’s loyalty program update is part of a trend among airlines to reward frequent flyer program members based on how much they spend. About a decade ago, major airlines adjusted their loyalty programs to reward customers for dollars spent for miles driven.
Airlines are also encouraging customers to sign up for credit cards by offering perks like no fees for checked bags and earlier boarding.
What’s changing in United MileagePlus?
United MileagePlus primary cardholders will get more miles per dollar spent on United flights and higher rates than they do now, compared to customers without the card. When they use that card to buy tickets, their earnings also increase.
Meanwhile, customers without a card will earn less than they do today.
For example, a traveler who does not have a co-branded United Airlines credit card will receive three miles per dollar spent on a ticket, instead of the current five. Under the new structure, a cardholder will be able to earn six miles or more if they use their card to make purchases. Those with Elite MileagePlus status also earn a higher rate of miles.
United said United debit card holders will also get more miles when they spend $10,000.
Cashback rate discounts for cardholders
United will now also allow customers who have one of its credit cards to use their miles on flights at a discount of at least 10% compared to those without a card.
As an example, an economy class award ticket with 15,000 miles would be 13,500 miles without elite Premier status, the carrier said. United said it reserves specially discounted award ticket inventory for cardholders, including premium Polaris seats.
Privileges for elites
Those with elite MileagePlus Premier status will receive deeper discounts and better mileage redemption. Elite card holders receive at least a 15% discount on mileage tickets.
United says a seat in a long-haul business class Polaris cabin with 200,000 miles will be worth 170,000 miles if the card member has elite Premier status. United added that the lowest-priced “Savers Reward” seats for Polaris will be accessible to MileagePlus members with United cards, seats that were previously only available to upper-level elites.
If they have both a credit card and a status, their earning rates also increase. MileagePlus 1K, the highest level before Global Services, will earn 17 miles for every dollar they spend when they use the United Club credit card.
What happens to basic economics brochures?
United Airlines passengers who do not have a credit card will not be able to receive miles for basic economy tickets. American Airlines Last year, it similarly announced that passengers in this class would no longer be allowed to earn miles, following an earlier move. Delta Airlines. But there is an exemption for those with United’s elite Premier status who can still earn miles in basic economy.
What about business travelers?
Business travelers often have to book with company credit cards under corporate travel policies. But United said people who personally own a United credit or debit card will earn more miles than an employee who doesn’t.
